Economic Reliance

Definition

Economic reliance refers to the dependence of one country or region on another for financial stability, resources, or trade. In the context of developing countries, it often implies a high level of dependency on developed nations for investment, aid, and market access.

Related terms

Foreign Direct Investment (FDI): The investment made by individuals or companies from one country into businesses located in another country.

Trade deficit: A situation where the value of a country's imports exceeds its exports over a given period, resulting in an imbalance in trade.

Structural Adjustment Programs (SAPs): Policies imposed by international financial institutions that require developing countries to implement specific economic reforms as conditions for receiving loans or aid.